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5905 Cerritos Avenue Long Beach, CA 90805

3 Beds 2 Baths 1,593 sqft Built 1939

$587,000

List Price

$2,790

$2.5K - $3K

Rent Est.

PROPERTY INFO

October 30, 2020 RECENTLY ADDED
FACTS
  • Built In 1939
  • Price/Sqft : $368.49
  • 5 Days on Market
  • MLS # : PW20229550
  • Updated Date : 10/30/2020 at 14:46
CONSTRUCTION
  • Beds : 3
  • Floor Size : 1,593 sqft
  • Baths : 2 full
Listing Agent

Nueva Real Estate

Listing Agent's Description

Great opportunity for an extended family to own a home in the city of Long Beach. This 3 bedroom 2 bath home is the perfect property you've been looking for. Family room and master bedroom have been converted to a separate unit and can easily be converted back. Look no further, this is the home for you! Conveniently located to public transit, freeways and local malls.

SEE MORE

MARKET HIGHLIGHTS

  • Headquarters to several Fortune 500 companies: Amgen, Farmers Insurance, Walt Disney, Avery Dennison, Activision Blizzard, CBRE Group, Edison International, Molina Healthcare, First American Financial, Pacific Life, Qualcomm and Sempra Energy (Fortune, 2018)
  • Southern California area contributes to 55.3% of California state economy i.e. Gross State Product (USMayors.org, 2018)
  • The area has major technology nodes of excellence: Los Angeles (Media and entertainment); Pasadena (High-tech engineering, data analytics); Riverside (Agtech, transportation/ distribution); San Diego (Healthcare, biotech, wireless communications); Irvine (Medtech, cyber security); El Segundo (Aerospace and defense IT, space transport) [BCG, 2018]
  • As part of Southern California area, Los Angeles market inherits all the benefits from the area.
  • Los Angeles has been awarded the 2028 Olympics under a funding commitment of $88 billion to upgrade the transportation infrastructure connecting disparate pockets of the metro area. This is expected to produce additional employment in the coming years. (BCG, 2018)
  • Southern California's economy is worth $1.58 trillion in Gross Metro Product and projected to grow to $1.67 trillion (USMayors.org, 2018)
  • Southern California produces more technology PhDs per year than any other region in the country and many of the higher educated students stay within Souther California contributing to readily available workforce skills making the area more attractive than Silicon Valley (BCG, 2018)
  • Southern California has 58.7% labor force participation rate; within this area, Los Angeles metro has 62.3% labor force participation rate (USMayors.org, 2018)

PRICE & RENT TRENDS

Neighborhood: Houghton Park

NeighborhoodNIR Market*CityMarket2010Year20002019150k200k250k300k350k400k450k500k550k600kPrice in $148k622k

* NIR Market: Aggregated price or rent trend of all neighborhoods with same NIR

Neighborhood: Houghton Park

NeighborhoodNIR Market*CityMarket2010Year2000 Q42019 Q2120014001600180020002200240026002800Rent in $11532941

* NIR Market: Aggregated price or rent trend of all neighborhoods with same NIR

SCHOOLS

NAME EDUCATIONAL LEVEL SCHOOL TYPE # OF STUDENTS # OF TEACHERS GREATSCHOOLS RATING
Harte Elementary School Primary Regular 932 33 5
Lindbergh Stem Academy Middle Regular 603 25 4
Jordan High School High Regular 3,367 133 2

Harte Elementary School

  • Education Level: Primary
  • # of students: 932
  • # of teachers: 33
5
GreatSchools Rating

Lindbergh Stem Academy

  • Education Level: Middle
  • # of students: 603
  • # of teachers: 25
4
GreatSchools Rating

Jordan High School

  • Education Level: High
  • # of students: 3,367
  • # of teachers: 133
2
GreatSchools Rating
 

$528,300$645,700$587,000

PURCHASE PRICE

$2,511$3,069$2,790

RENT

DOWN PAYMENT
FINANCING

FINANCIALS

PROJECTED BASIC MONTHLY INCOME STATEMENT

INCOME Rent $2,790
EXPENSES Loan Payment -$2,166
Property Tax -$636
Property Insurance -$66
Property Management Fees -$137
CASH FLOW
-$214

This is the estimated cash flow generated during a typical maintenance-free month. It is recommended that investors set aside 12% of earned rent to cover both maintenance and periods of vacancy.

$587,000

PROJECTED PRICE

$2,790

PROJECTED RENT

0.48%

PROJECTED RENT / PRICE RATIO

ASSUMPTIONS

Expense Inflation 2.50%
Rental Growth Year (1-5) 4.35%
Appreciation Year (1-5) 6.9%
Maintenance Year (1-5) 8.00%
Vacancy 4.14%
Length of Stay Years 2

PROJECTED ACCUMULATED WEALTH

30 YEAR PROJECTION

  • Cash Flow
  • Appreciation
  • Principal
11530$0.0$200k$400k$600k$800k$1.0M$1.2M$1.4M$1.6M$1.8M

PROJECTED ANNUAL CASH FLOW

11530-$5.0k$0.0$5.0k$10k$15k$20k$25k

PROJECTED PROPERTY VALUE

30 YEAR PROJECTION

  • Appreciation
  • Principal
  • Loan Balance
11530$0.0$200k$400k$600k$800k$1.0M$1.2M$1.4M$1.6M$1.8M

TOTAL CASH OUT OF POCKET

TOTAL OUT OFPOCKET$161,305

INVESTMENT

$161,305

Down Payment
$146,750
Rehab Estimate
$5,750
Closing Costs
$8,805

LOAN DETAILS

25%

DOWN PAYMENT

HOMEUNION RECOMMENDS:

A 50% down payment or higher enables the proceeds from the asset to cover all costs.

$2,166

MONTHLY LOAN PAYMENT

30 yr
Term
4.25%
Interest
25.00%
Down Payment
Term 30 Years
Interest 4.25%
Down Payment $146,750
Loan Amount $440,250
See What Happens When You Reinvest Cash Flow

4.58

YEARS SAVED

$32,778

INTEREST SAVED

CASH FLOW REINVESTMENT

The time & interest saved by applying each month's positive cash flow towards loan principal pay down.

  • $2,790

    LIST RENT
  • $1.75

    LIST RENT PER SQFT
  • $2,943

    COMP ESTIMATED VALUE
  • $1.85

    COMP AVG. RENT PER SQFT
Comps Range
$2,500
1$2,5002$2,6503$2,7904$2,8005$2,950
$2,950
RENT COMPS ANALYSIS
  • 5905 Cerritos Avenue Long Beach, CA 3
    • 3 beds 2 baths ∙ 1,593 Sqft ∙ Built 1939 3 beds 2 baths ∙ 1,593 Sqft ∙ Built 1939
    • Rent
    • Rent Per SQFT
    •  
    • $2,790
    • $1.75
    •  
  • 220 E 51st Street Long Beach, CA 1
    • 3 beds 2 baths ∙ 1,335 Sqft ∙ Built 1948 3 beds 2 baths ∙ 1,335 Sqft ∙ Built 1948
    LEASED 07/24/19
    • Rent
    • Rent Per SQFT
    •  
    • $2,500
    • $1.87
    •  
  • 5602 California Avenue Long Beach, CA 2
    • 3 beds 2 baths ∙ 1,600 Sqft ∙ Built 1938 3 beds 2 baths ∙ 1,600 Sqft ∙ Built 1938
    LEASED 06/13/20
    • Rent
    • Rent Per SQFT
    •  
    • $2,650
    • $1.66
    •  
  • 138 E Louise Street Long Beach, CA 4
    • 3 beds 2 baths ∙ 1,483 Sqft ∙ Built 1937 3 beds 2 baths ∙ 1,483 Sqft ∙ Built 1937
    LEASED 03/27/20
    • Rent
    • Rent Per SQFT
    •  
    • $2,800
    • $1.89
    •  
  • 4743 Boyar Avenue Long Beach, CA 5
    • 3 beds 2 baths ∙ 1,496 Sqft ∙ Built 1942 3 beds 2 baths ∙ 1,496 Sqft ∙ Built 1942
    LEASED 10/08/19
    • Rent
    • Rent Per SQFT
    •  
    • $2,950
    • $1.97
    •  
PROPERTY LISTING DETAILS
Jose Guevara
Nueva Real Estate
Darryl John Willis
1.866.250.5610
HomeUnion.com
Lic. BRE# 01526904
California Regional Multiple Listing Service ( CRMLS)
MLS #: PW20229550
Last Updated: 10/30/2020
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